Oracle’s Strategic Position Strengthened by TikTok Partnership and AI Expansion

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Oracle Corporation has cemented a pivotal position in the newly established TikTok US joint venture, marking a significant strategic advancement for its cloud computing division. The finalized agreement, confirmed on January 23, designates the technology giant as the primary technology partner for one of America's most prominent social media platforms. This move strategically extends Oracle's footprint in the competitive cloud sector.

The structure of the TikTok USDS joint venture sees Oracle, alongside private equity firms Silver Lake and MGX, each holding a 15% stake. ByteDance, TikTok's parent company, retains 19.9% ownership, with the remaining shares distributed among investors including the Dell Family Office, General Atlantic, and Susquehanna.

Oracle's involvement transcends a simple financial investment. The company has been appointed the "Trusted Security Partner" for the platform, assuming comprehensive responsibility for data integrity and system oversight. All user data originating in the United States will be housed and secured within Oracle's cloud infrastructure. Furthermore, Oracle is tasked with monitoring the security of the platform's algorithm and validating all software updates.

The scope of Oracle's responsibilities includes:

• Hosting and protecting all U.S. user data on its proprietary cloud infrastructure.
• Retraining and updating the content recommendation algorithm using U.S. data.
• Conducting continuous source code review as part of software control protocols.
• Holding a seat on the venture's seven-member board through Kenneth Glueck, an Oracle Executive Vice President.

Financial Performance Signals Robust Growth

Recent financial results underscore Oracle's positive trajectory. The company's earnings report for the second quarter of fiscal year 2026, released on December 10, 2025, revealed a 14% year-over-year revenue increase to $16.1 billion. Revenue from cloud services and license support showed particular strength, advancing 34% to $8 billion.

A highly indicative metric, Remaining Performance Obligations (RPO), which represents future revenue from signed contracts, surged by 438% to $523 billion. Adjusted earnings per share for the quarter were reported at $2.26. The market now awaits the next quarterly update, scheduled for March 9, 2026, for potential early financial indicators related to the TikTok partnership and ongoing AI initiatives.

Concurrent AI Infrastructure Drive Gains Momentum

Parallel to its TikTok engagement, Oracle continues to aggressively expand its artificial intelligence infrastructure footprint. On January 26, the company confirmed several active collaboration projects with OpenAI across multiple states, including Texas, New Mexico, Wisconsin, and Michigan.

A single project in Doña Ana County, New Mexico, is expected to generate approximately 4,000 construction jobs and up to 1,500 permanent positions. Oracle has committed to $360 million in direct payments to the county and an additional $50 million for local water system improvements, highlighting the scale of its investment.

@ boerse-global.de | US68389X1054 ORACLE’S